Canevari Corporation Makes a Product That Uses a Material with the Following

question 70

Multiple Choice

Canevari Corporation makes a product that uses a material with the following standards:

The company budgeted for production of 1,300 units in April, but actual production was 1,200 units. The company used 3,750 kilos of direct material to produce this output. The company purchased 4,100 kilos of the direct material at a total cost of $8,610. The direct materials purchases variance is computed when the materials are purchased.


-The materials quantity variance for November is:

• A)$3,290 F
• B)$3,196 F
• C)$3,290 U
• D)$3,196 U

---

Definitions:

Implied Warranty of Merchantability

A legal assumption that the goods sold meet certain quality standards, including that they are reasonably fit for their ordinary purpose.

Express Warranty

An explicit promise or assurance made by a seller about the condition, functionality, or quality of a product.

Sales Transaction

The process of exchanging a good or service for payment between a buyer and a seller.

Implied Warranty

A legal assumption that a product will meet basic standards of quality and functionality, even if not expressly stated.